According to the department, the move is aimed at ensuring public money is properly managed
It also seeks to curb unauthorised, irregular, fruitless and wasteful expenditure, while holding municipal office-bearers accountable where required by law
Maquassi Hills Municipality has been dealing with various cases of irregular and wasteful expenditure, unable to account for financial mismanagement in recent years. The municipality has been financially constraint failing to cover other financial expenses of service providers such as Magalies Water Board and others
The municipality has also failed to provide residents with services such as water citing financial difficulties
The municipality has been delivering water to various community areas through tankering
The Treasury says, this move to withhold the funding was influenced by persistent non-compluance with the MFMA
"The decision follows persistent and serious non-compliance with the Municipal Finance Management Act and its supporting regulations," - National Treasury said in a statement
Amongst municipalities affected by funding cut in North West include:
Madibeng, Kgetlengrivier, Tswaing, Mafikeng, Ditsobotla, Ngaka Modiri Molema District Municipality, Naledi, Mamusa, Dr Ruth Segomotsi, Mompati District Municipality, City of, Matlosana and JB Marks
According to the Treasury, the municipalities were given sufficient written notice and urged to improve their financial management before the funds were withheld
They were also given an opportunity to submit written reasons why their funds should not be withheld
Treasury says the intervention is a corrective, rather than punitive, measure and that the withholding of funds is temporary
The National Treasury says, the fund cutting won't impact service delivery in Maquassi Hills and other municipalities that were affected
"The National Treasury does not foresee any impact on service delivery," - National Treasury
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